28.11.12

Tenant affordability and an oversupply of rental properties across Central
London are contributing to an ongoing correction in rents, according to
property consultants Cluttons.

Landlords who wish to let
their properties now need to be flexible on rent and consider a reduction of
15 to 20% off current asking prices to avoid the undesirable position of
having an unlet property as Christmas and the New Year, the firm says.

Increasingly, price-conscious tenants, many of whom can no longer rely on the
cushion of a corporate let, are renegotiating hard on new agreements or at
renewal and are using the greater choice of rental property as a bargaining
tool.

Affordability is now central to the performance of Londonђs rental market.
Landlords cannot achieve the rents they were getting 12 months ago and must
now be far more realistic with rent reductions of around 15 to 20% in order
to secure a let, said Lynn Hilton, partner for residential lettings at
Cluttons.

Despite a small turn around in rents during the third quarter, our evidence
shows that rents have begun retreating once more, highlighting the need for
landlords to be realistic in their approach and expectations. Sensible landlords
need to accept these reductions to minimise void periods. Greater choice
across Central London is no doubt adding to tenants bargaining power,Ғ she
added.